Which of the following statements about the equity method are true? Note: Select all that apply. Check All That Apply International accounting standards require the equity method for use with significant influence investees. U.S. GAAP require the equity method for use with significant influence investees. U.S. GAAP requires that the accounting policies of investees be adjusted to correspond to those of the investor when applying the equity method. Both IFRS and U.S. GAAP provide the fair value option for all investments that qualify for the equity method.

Which of the following statements about the equity method are true? Note: Select all that apply. Check All That Apply International accounting standards require the equity method for use with significant influence investees. U.S. GAAP require the equity method for use with significant influence investees. U.S. GAAP requires that the accounting policies of investees be adjusted to correspond to those of the investor when applying the equity method. Both IFRS and U.S. GAAP provide the fair value option for all investments that qualify for the equity method.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 17CYBK

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Question

Knowledge Check 01
Which of the following statements about the equity method are true?
Note: Select all that apply.
Check All That Apply
International accounting standards require the equity method for use with significant influence investees.
U.S. GAAP require the equity method for use with significant influence investees.
U.S. GAAP requires that the accounting policies of investees be adjusted to correspond to those of the investor when applying the
equity method.
Both IFRS and U.S. GAAP provide the fair value option for all investments that qualify for the equity method.

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